Provides with respect to arbitration or any other type of binding mediation by automobile insurers for certain purposes
Impact
This legislation directly impacts policies related to automobile insurance, specifically by mandating notification requirements for insurers. By enacting R.S. 22:1892.1, the bill seeks to foster a more equitable approach in fault determinations, particularly safeguarding insured individuals from premium hikes that result from potentially ambiguous arbitration outcomes. The law will apply to all automobile insurance policies issued or renewed after June 1, 2010, establishing a standardized practice to protect consumer rights within the insurance sector.
Summary
House Bill 698 addresses the practices of automobile insurers in Louisiana regarding the use of arbitration or binding mediation when determining fault in automobile accident claims. The bill ensures that insurers cannot utilize such methods to adjust the insurance premiums of the insured without first notifying them of the percentage of fault assigned to them before the arbitration process takes place. This measure aims to enhance transparency and protect consumers from unforeseen increases in their insurance costs resulting from arbitration decisions.
Sentiment
The sentiment surrounding HB 698 appears to be predominantly positive among consumer advocacy groups and individuals who have faced challenges with insurance companies' fault determinations. The prospect of increased transparency in how fault is assessed and communicated to insured parties is well-received, offering reassurance that consumers will not face unexpected increases in their insurance costs without prior notification. However, the legislation may meet some resistance from insurance providers who could argue that it complicates the arbitration process, potentially leading to delays and additional administrative burdens.
Contention
Notable contention surrounding the bill may revolve around the balance between protecting consumer rights and maintaining the operational efficiency of insurance companies. While advocates champion the bill's protective measures against arbitrarily increased premiums, opponents might raise concerns regarding the potential for increased operational costs and disputes arising from mandatory notifications. The legislation may initiate discussions on the most effective ways to regulate insurance practices while ensuring fairness and transparency in claims processing.
Prohibits health insurers from seeking reimbursement from an insurer providing automobile medical payment coverage to the health insurer's insured without written consent of the insured, or member, or his legal representative. (8/15/10)